In August 2008, Ethan Nicholas Developed the IShoot App for the Apple

question 16

Multiple Choice

In August 2008, Ethan Nicholas developed the iShoot app for the Apple iPhone 3G, and within five months had earned $800,000 from this program.By May 2009, Nicholas had dropped the price from $4.99 to $1.99 in an attempt to maintain sales.This example indicates that in a competitive market,

• A)earning an economic profit in the long run is extremely easy.
• B)earning an economic profit in the long run is extremely difficult.
• C)it is impossible to earn an economic profit in either the short run or the long run.
• D)economic profits are only earned in the long run.

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Definitions:

Divisionalized Form

An organizational structure where operations are segmented into semi-autonomous divisions, each focused on a particular product line or geographic area.

Departmentalization

The process of dividing an organization into different departments or units, each specializing in certain tasks or functions.

Team-Based Structures

Team-based structures are organizational arrangements where work is coordinated and carried out primarily through teams rather than traditional hierarchical lines.

Divisionalized Structures

An organizational structure where operations are segregated based on products, services, markets, or geographical locations.